Commissioners give hydro plan go-ahead

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A hydro-electricity company says it will work with state miner Solid Energy to alleviate concerns that its $200 million project could harm operations at a West Coast coalmine.

Commissioners approved Hydro Developments (HDL) Stockton Plateau hydro project on Tuesday.

Solid Energy has plans for its own hydro project at Stockton mine, north of Westport, and last year asked for conditions to be imposed to make the HDL scheme subject to the requirements of the mine.

At the time, Solid Energy chief operating officer Barry Bragg said he feared the scheme could mean the state-owned enterprise's applications for water and other consents could be refused or "we end up with conditions so restrictive that our mining operations become uneconomic".

Spokeswoman Vicki Blyth said Solid Energy still had concerns about the project. "We will continue to discuss these matters with HDL if they are willing to talk to us."

Solid Energy had not applied for resource consent for its hydro project, Blyth said.

HDL will divert tributaries of the Ngakawau River to produce an estimated 240 gigawatt hours of power a year.

The company said it would reduce contaminants entering the Ngakawau by capturing tributaries polluted by mining activities.

Project manager John Easther said HDL needed to be granted land access by Solid Energy and it was possible the two companies could work together on the project. HDL had approached Solid Energy as a potential investor in light of the benefits it would gain from the project, Easther said.

The commissioners said the scheme would reduce pollution in the Ngakawau, cut power costs to people in the area and that most of the HDL consents would not adversely affect the mine.